Permanent health insurance costs?

B6yse

Hi all

so I have had a PHI policy for around 15 years now, and so far not had to use it “touch wood” 
I have changed jobs a few times and salary has risen, so decided now I have reached the grand old age of 50 I needed to look into it, and found i was down £100 a year,

so previously I was paying £72 a month for around £400 per week cover, now I have had it revised for around £500 per week cover it has gone up to £90 and will rise to £122 next year

this is for a 13 week deferred plan, income assured plus plan from a “Friendly” company in Cirencester 

It like it’s got expensive to me but don’t have anything to compare against, and don’t fancy going through rigmarole of applying elsewhere just for a comparison,

So I was hoping a knowledgeable person here could tell me if this is a competitive price?

thanks

B6yse

Forgot to mention the policy has 17 years remaining, and I'm a combustion engineer in the gas industry 

B6yse

Nobody any idea?

MyRealNameToo

B6yse said:

Hi all

so I have had a PHI policy for around 15 years now, and so far not had to use it “touch wood” 
I have changed jobs a few times and salary has risen, so decided now I have reached the grand old age of 50 I needed to look into it, and found i was down £100 a year,

so previously I was paying £72 a month for around £400 per week cover, now I have had it revised for around £500 per week cover it has gone up to £90 and will rise to £122 next year

this is for a 13 week deferred plan, income assured plus plan from a “Friendly” company in Cirencester 

It like it’s got expensive to me but don’t have anything to compare against, and don’t fancy going through rigmarole of applying elsewhere just for a comparison,

So I was hoping a knowledgeable person here could tell me if this is a competitive price?

So yours has a reviewable premium, given you mention it will rise next year?

PHI is priced on age, health, job and lifestyle, prices vary massively depending on if your premium is fixed or reviewable, if your benefit is indexed or not, your retirement age etc. Also there are PHI "lite" policies out there that only payout to a maximum number of years rather than to retirement. 

I initially paid £129 for £3,500 per month cover to 67th birthday with 13 week deferment. Had I bought a flat policy I would still be paying that price until my 67th birthday but I indexed mine so both premiums and benefits go up inline with inflation each year. 

Were I to buy a new policy today though my premiums would be higher given I have more medical conditions than I did in 2012 and with a non-reviewable premium you're effectively paying an average and that will be higher as a 47-67 than it was as a 34-67